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  3. AO 106 (SDNY Rev. 01/17) Application for a Search Warrant
  4. UNITED STATES DISTRICT COURT
  5. for the
  6. Southern District of New York
  7. In the Matter of the Search of
  8. (Briefly describe the property to be searched
  9. or identify the person by name and address)
  10. Loews Regency Hotel, 540 Park Avenue, Room
  11. 1628
  12. 2968
  13. APPLICATION FOR A SEARCH AND SEIZURE WARRANT
  14. I, a federal law enforcement officer or an attorney for the government, request a search warrant and state under
  15. penalty of perjury that I have reason to believe that on the following person or property (identify the person or describe the
  16. property to be searched and give its location):
  17. Loews Regency Hotel, 540 Park Avenue, Room 1628, a Suite that Encompasses Rooms 1628, 1629, and 1630 New York, New York 10065
  18. located
  19. Southern
  20. Districto
  21. person or describe the property to be seized):
  22. See Attached Affidavit and its Attachment A
  23. New York
  24. there is now concealed (identify the
  25. The basis for the search under Fed. R. Crim. P. 41 (c) is (checkone or more):
  26. <evidence of a crime;
  27. €contraband, fruits of crime, or other items illegally possessed;
  28. 06roperty designed for use, intended for use, or used in committing a crime;
  29. a person to be arrested or a person who is unlawfully restrained.
  30. The search is related to a violation of:
  31. Code Section(s)
  32. Offense Description(s)
  33. 18 usc 371,-1005, 1014, 1343, Conspiracy, false bank entries, false statements to a financial
  34. 1344; 52 USC 30116 and 30109
  35. institution, wire fraud, bank fraud, and illegal campaign contributions
  36. The application is based on these facts:
  37. See Attached Affidavit and its Attachment A
  38. Continued on the attached sheet.
  39. Delayed notice of 30 days (give exact ending date if more than 30 days:
  40. under 18 U.S.C. 3103a, the basis of which is set forth on the attached sheet.
  41. ) is requested
  42. Sworn to before me and signed in my presence.
  43. Date:
  44. City and state: New York, NY
  45. Judge 'S signature
  46. Print name and tide
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  49. UNITED STATES DISTRICT COURT
  50. SOUTHERN DISTRICT OF NEW YORK
  51. In the Matter of the Application of the United
  52. States of America for a Search and Seizure
  53. Warrant for the Premises Known and Described
  54. as Loews Regency Hotel, 540 Park Avenue,
  55. Room 1628, a Suite that Encompasses Rooms
  56. 1628, 1629, and 1630 New York, New York
  57. 10065, and Any Closed Containers/ltems
  58. Contained Therein
  59. Reference No. 2018100127
  60. SOUTHERN DISTRICT OF NEW YORK) ss.:
  61. TO BE FILED UNDER SEAL
  62. Agent Affidavit in Support of
  63. Application for Search and Seizure
  64. Warrant
  65. being dul swo
  66. Special Federal Bureau of Investi atio
  67. deposes and says:
  68. I. Introduction
  69. A. Affiant
  70. I am a Special Agent with the Federal Bureau of Investigation ("FBI"). I have been
  71. 1.
  72. a Special Agent with the FBI since 2009. In the course of my experience and training in these
  73. positions, I have participated in criminal investigations into federal offenses involving a wide array
  74. of financial crimes, including frauds on financial institutions, as well as into offenses involving
  75. public corruption. I also have train.ing and experience executing search warrants, including those
  76. involving electronic evidence.
  77. 2. On or about April 8, 2018 , the Honorable Henry B. P itman, United States
  78. Magistrate Judge, issued a search and seizure warrant for the premises known and described as
  79. Loews Regency Hotel, 540 Park Avenue, Room 1728, New York, New York 10065, and Any
  80. Closed Containers/ltems Contained Therein. The warrant and my supporting affidavit (the
  81. "Affidavit") are appended hereto. The Affidavit is incorporated herein by reference in its entirety
  82. as Exhibit A.
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  87. 3. On or about April 9, 2018, based upon a conversation with another law enforcement
  88. agent who spoke to an employee of Loews Regency Hotel, I learned that Michael Cohen is in fact
  89. staying in Room 1628 (in a suite encompassing rooms 1628, 1629, and 1630) (collectively, "Room
  90. 1628"), not Room 1728. Accordingly, I respectfully submit the attached amended warrant
  91. pursuant to Rule 41 ofthe Federal Rules ofCriminal Procedure for the following Subject Premises:
  92. Loews Regency Hotel, 540 Park Avenue, Room 1628, New York, New York 10065, and Any
  93. Closed Containers/ltems Contained Therein ("Subject Premises-4"). For the reasons detailed in
  94. the Affidavit and herein, I believe that there is probable cause to believe that Subject Premises-4
  95. entries), 1014 (false statements to a financial institution), 1343 (wire fraud), and 1344 (bank fraud)
  96. (collectively, the "Bmk Fraud Offenses"), 52 U.S.C. and
  97. (illegal campaign contributions) (the "Campaign Finance Offenses"), and 18 U.S.C. 371
  98. (conspiracy as it pertains to the other Subject Offenses) (collectively, the "Subject Offenses").
  99. 4. Based on the foregoing, I respectfully request the court to issue a warrant to seize
  100. the items and information specified in Attachment A to this affidavit and to the Search and Seizure
  101. Warrant.
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  106. 5. In light of the confidential nature of the continuing investigation, I respectfully
  107. request that this affidavit and all papers submitted herewith be maintained under seal until the
  108. Court orders otherwise.
  109. Special Agent
  110. FBI
  111. Sworn to before me on
  112. 9th day of April, 2018
  113. HON.
  114. B. PITMAN
  115. UNITED STATES MAGISTRATE JUDGE
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  120. ATTACHMENT A
  121. I. Premises to be Searched—Subiect Premises-4
  122. The premises to be searched ("Subject Premises-4") are described as follows, and include
  123. electronic devices, and all locked and closed containers found therein:
  124. Room 1628 (a suite encompassing rooms 1628, 1629, and 1630) (collectively, "Room
  125. 1628"), located inside the Loews Regency Hotel at 540 Park Avenue, New York, New York
  126. 10065. The building is a luxury hotel located on Park Avenue and 61st Street. Subject Premises-
  127. 4 is located on the 16th floor of the hotel.
  128. II. Items to Be Seized
  129. A. Evidence, Fruits, and Instrumentalities of the Subject Offenses
  130. The items to be seized from Subject Premises-4 are evidence, fruits, and instrumentalities
  131. of violations of 18 U.S.C. 371 (conspiracy, as it pertains to the other Subject Offenses), 1005
  132. (false bank entries), 1014 (false statements to a financial institution), 1343 (wire fraud), and 1344
  133. (bank fraud), and 52 U.S.C. and 30109(d)(1)(A)(1) (illegal campaign
  134. contributions) (the "Subject Offenses"), described as follows:
  135. a. Evidence relating to Sterling National Bank, Melrose Credit Union, and/or taxi
  136. medallions, from January 1, 2013 to the present.
  137. b. Evidence relating to a plan, proposal, or agreement for Michael Cohen and/or
  138. entities associated with him to transfer anv interest in taxi medallions, and any associated debts or
  139. md/or entities associated with him.
  140. liabilities, to others, including to
  141. c. Evidence relating to a plan, proposal, or agreement to modify loans that Cohen has
  142. with Sterling and/or Melrose.
  143. d. Evidence relating to Essential Consultants, LLC, including any documents that
  144. indicate the nature and purpose of payments made to or from Essential Consultants or the nature
  145. of any work done by Cohen or any other individuals in connection with Essential Consultants.
  146. e. Evidence of income to Michael D. Cohen & Associates, including any documents
  147. that indicate the nature and purpose ofpayments made to or from Michael D. Cohen & Associates,
  148. or evidence of the purpose of accounts opened in the name of Michael D. Cohen & Associates.
  149. f. Evidence relating to Cohen's net worth, available cash and cash equivalents,
  150. monthly and annual income, income sources, and other assets, whether held personally or through
  151. entities, including tax returns, personal financial statements, and bank records, from January 1,
  152. 2013 to the present.
  153. g. Evidence relating to agreements, loans, and/or financial transactions between
  154. and/or entities controlled by
  155. Cohen
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  160. and any payments by
  161. l, 2012 to the present.
  162. to Cohen, from January
  163. h. Evidence relating to payments to Stephanie Clifford, Karen McDougal, or their
  164. agents or legal representatives, including any nondisclosure agreements and related documents,
  165. and any communications related to such agreements.
  166. i. Evidence of communications involving Michael Cohen, Donald Trump and/or
  167. agents or associates of the Trump Campaign about Stephanie Clifford or Karen McDougal, or
  168. payments to Stephanie Clifford or Karen McDougal.
  169. j. Evidence of communications between Michael Cohen and American Media, Inc.,
  170. David Pecker, and/or Dylan Howard about Donald Trump, the Trump Campaign, Stephanie
  171. Clifford, and/or Karen McDougal.
  172. k. Evidence relating to Cohen's role in the Trump Campaign, and coordination or
  173. l. Evidence ofcommunicationswith Donald Trump and/or agents or associates ofthe
  174. Trump Campaign about the Access Hollywood tape and other potential sources of negative
  175. publicity involving Trump's relationship in the run up to the election.
  176. m. Evidence relating to any reimbursement or other promises made to Cohen for
  177. payment to Clifford or others in connection with the election.
  178. n. Evidence relating to Cohen's knowledge of the campaign finance laws, campaign
  179. contribution reporting requirements, and campaign contribution limits.
  180. o. Communications with others, including Jeffrey Getzel and/or other accountants,
  181. relating to Cohen's bank accounts, taxes, debts, and/or finances, from January 1, 2013 to the
  182. present.
  183. p. Communications, records, documents, and other files reflecting false
  184. representations to a financial institution related to the intended purpose of an account or loan at
  185. that financial institution; the nature of any business or entity associated with an account at a
  186. financial institution; the source of funds flowing into an account; or the purpose or nature of any
  187. financial transactions involving that financial institution, from January 1, 2013 to the present.
  188. q. Evidence ofCohen's intent as it relates to the Subject Offenses under investigation.
  189. B. Search and Seizure of Electronically Stored Information
  190. The items to be seized from Subject Premises-4 also include any computer devices and
  191. storage media that may contain any electronically stored information falling within the categories
  192. set forth in Section II.A of this Attachment above, including, but not limited to, a MacBook Pro,
  193. any other desktop and laptop computers, any Apple iPhone or other cellphone or smafiphone
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  198. belonging to Michael Cohen or in his possession, an Apple iPad Mini, portable hard drives, disk
  199. drives, thumb drives, and personal digital assistants. In lieu of seizing any such computer devices
  200. or storage media, this warrant also authorizes the copying of such devices or media for later review.
  201. The items to be seized from Subject Premises-4 also include:
  202. 1. Any items or records needed to access the data stored on any seized or copied
  203. computer devices or storage media, including but not limited to any physical keys, encryption
  204. devices, or records of login credentials, passwords, private encryption keys, or similar information.
  205. 2. Any items or records that may facilitate a forensic examination of the computer
  206. devices or storage media, including any hardware or software manuals or other information
  207. concerning the configuration of the seized or copied computer devices or storage media.
  208. 3. Any evidence concerning the identities or locations ofthose persons with access to,
  209. control over, or ownership ofthe seized or copied computer devices or storage media.
  210. C. Review ofES1
  211. Following seizure of any computer devices and storage media and/or the creation of
  212. forensic image copies, law enforcement personnel (which may include, in addition to law
  213. enforcement officers and agents, attorneys for the government, attorney support staff, agency
  214. personnel assisting the government in this investigation, and outside technical experts under
  215. government control) are authorized to review the ESI contained therein for information responsive
  216. to the warrant.
  217. In conducting this review, law enforcement personnel may use various techniques to locate
  218. information responsive to the warrant, including, for example:
  219. • surveying various file "directories" and the individual files they contain (analogous to
  220. looking at the outside of a file cabinet for the markings it contains and opening a drawer
  221. believed to contain pertinent files);
  222. • opening or cursorily reading the first few "pages" of such files in order to determine
  223. their precise contents;
  224. o scanning storage areas to discover and possibly recover recently deleted files or
  225. deliberately hidden files;
  226. perfonning key word searches through all electronic storage areas to determine whether
  227. occurrences of language contained in such storage areas exist that are intimately related
  228. to the subject matter of the investigation; and
  229. reviewing metadata, system information, configuration files, registry data, and any
  230. other information reflecting how, when, and by whom the computer was used.
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  235. Law enforcement personnel will make reasonable efforts to search only for files,
  236. documents, or other electronically stored information within the categories identified in Sections
  237. II.A and II.B of this Attachment. However, law enforcement personnel are authorized to conduct
  238. a complete review of all the ESI from seized devices or storage media if necessary to evaluate its
  239. contents and to locate all data responsive to the warrant.
  240. Additionally, review of the items described in this Attachment shall be conducted pursuant to
  241. established procedures designed to collect evidence in a manner reasonably designed to protect
  242. any attorney-client or other applicable privilege. When appropriate, the procedures shall include
  243. use of a designated "filter team," separate and apart from the investigative team, in order to
  244. address potential privileges.
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  251. UNITED STATES DISTRICT COURT
  252. SOUTHERN DISTRICT OF NEW YORK
  253. In the Matter of the Application of the United
  254. States of America for a Search and Seizure
  255. Warrant for the Premises Known and Described
  256. as (1) 502 Park
  257. York, New York 10022, (2) Michael Cohen's
  258. Office at 30 Rockefeller Plaza, 23rd Floor, New -
  259. York, New York 10112, (3) Safe Deposit Box #
  260. —Located at the TD Bank Branch at 500 Park
  261. Avenue, New York, New York 10019, and (4) -
  262. Loews Regency Hotel, 540 Park Avenue, Room .
  263. 1728, New York, New York 10065, and Any
  264. Closed Containers/ltems Contained Therein, and
  265. the Electronic Devices Known and Described as
  266. d (2) an Apple iPhone with Phone
  267. Number .
  268. Reference No. 2018R00127
  269. SOUTHERN DISTRICT OF NEW YORK) ss.:
  270. TO BE FILED UNDER SEAL
  271. Agent Affidavit in Support of
  272. Application for Search and Seizure
  273. Warrant
  274. Special Agent, Federal Bureau of Investigation, being duly sworn,
  275. deposes and says:
  276. I. Introduction
  277. A. Affiant
  278. I am a Special Agent with the Federal Bureau of Investigation ("FBI"). I have been
  279. 1.
  280. a Special Agent with the FBI since 2009. In the course of my experience and training in these
  281. positions, I have participated in criminal investigations into federal offenses involving a wide array
  282. of financial crimes, including frauds on financial institutions, as well as into offenses involving
  283. public corruption. I also have training and experience executing search warrants, including those
  284. involving electronic evidence.
  285. I make this Affidavit in support of an application pursuant to Rule 41 of the Federal
  286. 2.
  287. Rules of Criminal Procedure for a wan-ant to search the premises specified below (the "Subject
  288. 2
  289. 201108.02
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  292. Premises") and the electronic devices specified below (the "Subject Devices") for, and to seize,
  293. the items and infonnation described in Attachments A, B, C, D, E and F. This affidavit is based
  294. upon my personal knowledge; my review ofdocuments and other evidence; my conversations with
  295. other law enforcement personnel; and my training, experience and advice received concerning the
  296. use of electronic devices in criminal activity and the forensic analysis of electronically stored
  297. information ("ESI"). Because this affidavit is being submitted for the limited purpose of
  298. establishing probable cause, it does not include all the facts that I have learned during the course
  299. of my investigation. Where the contents of documents and the actions, statements, and
  300. onversationsofothers
  301. otherwise indicated.
  302. B. The Subject Premises and Subject Devices
  303. Subject Premises-I, Subject Premises-2, Subject Premises-3 and Subject Premises-
  304. 3.
  305. 4 (collectively, the "Subject Premises") are particularly described as:
  306. a
  307. located inside the building at 502
  308. a. Subject Premises-I is Apartment
  309. Park Avenue, New York, New York 10022. The building located at 502 Park Avenue is a 32-
  310. loor of the building.
  311. floor brick residential building. Subject Premises-I is located on the
  312. Based on my review of New York City property records, I have learned that Michael Cohen and
  313. Laura Cohen own Subject Premises-1.1 Additionally, as described below, Subject Premises-I is
  314. Cohen's full-time residence.
  315. Subject Premises-2 is an office located on the 23rd floor of the building at
  316. b.
  317. 30 Rockefeller Plaza, New York, New York 10112. The building located at 30 Rockefeller Plaza
  318. I As noted infra, I have learned that on or about October 28, 2015, Cohen transfen•ed Subject
  319. Premises-I into a frust.
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  324. is a 66-floor offlce building that spans the entire block between Sixth Avenue and Rockefeller
  325. Plaza. Subject Premises-2 is located on the 23rd floor of the building inside of the offices of the
  326. law firm Squire Patton Boggs. The office is assigned to Michael Cohen. As described below,
  327. Michael Cohen works and conducts meetings at Subject Premises-2.
  328. Subject Premises-3 is a safety deposit box located inside the TD Bank
  329. c.
  330. branch location at 500 Park Avenue, New York, New York 10019. Based on my review ofrecords
  331. maintained by TD Bank, I have learned that the safety deposit box is approximately five inches by
  332. Ehe safety deposit box is in the name of Michael
  333. ten inches in size, and is marked as box
  334. Cohen and-Eauræeohen.
  335. Subject Premises-4 is Room 1728 located inside the Loews Regency Hotel
  336. d.
  337. at 540 Park Avenue, New York, New York 10065. The building is a luxury hotel located on Park
  338. Avenue and 61st Street. Subject Premises-4 is located on the 17th floor of the hotel. Based on my
  339. review of emails obtained pursuant to search warrants described below, I have learned that on or
  340. about January 5, 2018, Cohen received an email from an employee of Loews Regency, which
  341. included a price quote for a long-term stay suite based on a three-month stay from January 8 to
  342. April 8, 2018.2 On or about January 29, 2018, Cohen sent an email to a Loews Regency employee,
  343. stating, in pertinent part: "I just spoke to my wife and she has scheduled the move for Thursday.
  344. Please mark down that we will be taking possession on Thursday, February 1st." Based on my
  345. review of cell phone location data, I have learned that, over the past 24 hours, two cellular phones
  346. used by Cohen have been located in the vicinity of Subject Premises-4. In particular, on or about
  347. 2 Although the quoted price contemplated a three-month stay from January 8 to April 8, it appears
  348. that Cohen did not move in until February 1, and as of today, April 8, cellphone location
  349. information demonstrates that Cohen's cellular phones are in still in the vicinity of Subject
  350. Premises-4.
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  355. April 8, 2018, law enforcement agents using a "triggerfish" device identified Room 1728 as the
  356. room within the hotel in which the Subject Devices are most likely present.3
  357. e.
  358. Premises-4.
  359. Therefore, I believe that Cohen is temporarily residing in Subject
  360. Subject Device-I and Subject Device-2 (collectively, the "Subject Devices") are
  361. 4.
  362. particularly described as:
  363. a. Subject Device-I is an Apple iPhone serviced by AT&Twith the telephone number
  364. Based on my review of records maintained by AT&T, I have learned that Subject
  365. to-Michael-Cohen. Based-ön-my-review-ofcellphonelocation-infonnation
  366. maintained by AT&T, I have learned that Subject Device-I is presently located in the Southern
  367. District of New York.
  368. b. Subject Device-2 is an Apple iPhone serviced by AT&Twith the telephone number
  369. Based on my review ofrecords maintained by AT&T, I have leamed that Subject
  370. Device-2 is subscribed to Michael Cohen. Based on my review of cellphone location information
  371. maintained by AT&T, I have learned that Subject Device-2 is presently located in the Southern
  372. District of New York.
  373. c. Based on my training, experience, and research, and from consulting the
  374. manufacturer's and service providers' advertisements and product technical specifications
  375. available online, I know that the Subject Devices have capabilities that allow them to, among other
  376. things: make and receive telephone calls; save and store contact information; send and receive
  377. 3 Based on my conversations with these agents, I understand that it is also possible that the Subject
  378. Devices are one floor below, in Room 1628. However, as noted, I understand that Cohen received
  379. a price quote for a long-term stay suite and is residing there with his family. Based on my
  380. conversations with FBI agents conducting surveillance, I understand that Room 1728 appears to
  381. be a suite, whereas Room 1628 appears to be a standard room.
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  386. emails and text messages; download and run mobile telephone applications, including encrypted
  387. call and messaging application such as 1%atsApp, Signal, and Dust; take, send, and receive
  388. pictures and videos; save and store notes and passwords; and store documents.
  389. C. The Subject Offenses
  390. For the reasons detailed below, I believe that there is probable cause to believe that
  391. 5.
  392. the Subject Premises and Subject Devices contain evidence, fruits, and instrumentalities of
  393. violations of 18 U.S.C. 1005 (false bank entries), 1014 (false statements to a financial
  394. institution), 1343 (wire fraud), and 1344 (bank fraud) (collectively, the "Bank Fraud Offenses"),
  395. "Campaign Finance Offenses"), and 18 U.S.C. 371 (conspiracy as it pertains to the other
  396. Subject Offenses) (collectively, the "Subject Offenses").
  397. D. Prior Applications
  398. 6. The FBI and the United States Attorney's Office for the Southem District of New
  399. York ("USAO") have been investigating several courses of criminal conduct by Michael Cohen.
  400. Cohen is an attorney who currently holds himselfout as the personal attorney for President Donald
  401. Trump, and who previously served for over a decade as an executive in the Trump Organization,
  402. an international conglomerate with real estate and other holdings.
  403. 7. In connection with an investigation then being conducted by the Office of the
  404. Special Counsel ("SCO"), the FBI sought and obtained from the Honorable Beryl A. Howell, Chief
  405. United States District Judge for the District of Columbia, three search warrants for emails and
  406. other content information associated with two email accounts used by Cohen, and one search
  407. warrant for stored content associated with an iCloud account used by Cohen. Specifically:
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  412. a. On or about July 1 8, 2017, the FBI sought and obtained a search warrant for
  413. gmail.com (the "Cohen Gmail Account") sent or received
  414. emails in the account
  415. between January 1, 2016 and July 18, 2017 (the "First Cohen Gmail Warrant').
  416. b. On or about August 8, 2017, the FBI sought and obtained a search warrant
  417. (the
  418. for content stored in the iCloud account associated with Apple ID
  419. "Cohen iCloud Account" and the "Cohen iCloud Warrant").
  420. On or about November 13, 2017, the FBI sought and obtained a search
  421. C.
  422. warrant for emails in the Cohen Gmail Account sent or received between June I, 2015 and
  423. November-13, .
  424. d. On or about November 13, 2017, the FBI sought and obtained a search
  425. warrant for emails in the account
  426. "the "Cohen N'DCPC Account") sent or
  427. received between the opening of the Cohen MDCPC Account4 and November 13, 2017 (the "First
  428. Cohen YDCPC Warrant").
  429. 8. The SCO has since referred celtain aspects of its investigation into Cohen to the
  430. USAO, which is working with the FBI's New York Field Office. As part of that referral, on or
  431. about February 8, 2018, the SCO provided the USAO with all non-privileged emails and other
  432. content information obtained pursuant to the First Cohen Gmail Warrant, Second Cohen Gmail
  433. Warrant, and Cohen WIDCPC Warrant. On or about March 7, 2018, the SCO provided the USAO
  434. 4 Based on my review of this wan-ant and the affidavit in suppol-t of it, I know that the warrant did
  435. not specify a time period, but the affidavit indicated that, pursuant to court order, the service
  436. provider had provided non-content information for the Cohen NIDCPC Account that indicated that
  437. the account contained emails from the approximate period of March 2017 through the date of the
  438. warrant.
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  443. with all non-privileged content obtained pursuant to the Cohen iCloud Warrant.s A filter team
  444. working with the SCO had previously reviewed the content produced pursuant to these warrants
  445. for privilege.
  446. On or about February 28, 2018, the USAO sought and obtained search warrants for
  447. 9.
  448. emails in the Cohen Gmail Account and the Cohen MDCPC Account, among other accounts, sent
  449. or received between November 14, 2017 and February 28, 2018 (the "Third Cohen Gmail Warrant"
  450. and the "Second Cohen MDCPC Warrant"). The content produced pursuant to these warrants is
  451. 6
  452. subject to an ongoing review for privilege by an SDNY filter team.
  453. 10.
  454. "Cohen Email Warrants."
  455. 11. On or about April 7, 2018, the USAO and FBI sought and obtained a warrant for
  456. prospective and historical cellphone location information for Subject Device-I and Subject
  457. Device-2. On or about April 8, 2018, the USAO and FBI sought and obtained authority to employ
  458. an electronic technique, commonly known as a 'triggerfish," to determine the location of Subject
  459. Device-I and Subject Device-2.
  460. II. Probable Cause
  461. A. Overview
  462. 12. The United States Attorney's Office for the Southern District ofNewYork and FBI
  463. are investigating, among other things, schemes by Target Subject Michael Cohen (a) to defraud
  464. multiple banks from in or about 2016 up to and including the present, and (b) to make an illegal
  465. 5 The SCO had previously provided a subset of this non-privileged content on or about February
  466. 2, 2018.
  467. 6 On or about February 28, 2018 and April 7, 2018, the USAO and FBI sought and obtained Rule
  468. 41 search warrants authorizing the search of emails and content obtained pursuant to previously
  469. issued warrants for additional subject offenses.
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  474. campaign contribution in October 2016 to then-presidential candidate Donald Trump. As noted,
  475. Cohen is an attorney who currently holds himselfout as the personal attorney for President Donald
  476. Trump, and who previously served for over a decade as an executive in the Trump Organization,
  477. an international conglomerate with real estate and other holdings.
  478. 13. The investigation has revealed that Cohen has made affirmative misrepresentations
  479. in and omitted material information from financial statements and other disclosures that Cohen
  480. provided to multiple banks in connection with a transaction intended to relieve Cohen of
  481. approximately $22 million in debt he owed on taxi medallion loans from the banks. As set forth
  482. ill-detail-below, in these-financial statements-and-in-his-oral-and-othevwritten-statementstothese—
  483. banks, Cohen appears to have (i) intentionally misrepresented his ability to pay cash by failing to
  484. disclose cash he began receiving in 2017 from new consulting work; (ii) significantly understated
  485. his total holdings of cash and cash equivalents; (iii) failed to disclose tens of thousands of dollars
  486. he received in monthly interest income, and (iv) failed to inform the banks from which he was
  487. seeking debt relief that he had agreed to make a $3.8 million cash payment to a third party,—
  488. in connection with
  489. acquisition of the taxi medallions securing Cohen's
  490. debt. By making these misrepresentations and material omissions, Cohen avoided making
  491. monthly payments on his loans, and attempted to fraudulently induce the banks to relieve him of
  492. certain repayment obligations and personal guarantees that Cohen and his wife had signed.
  493. 14. Additionally, the investigation has revealed that shortly before the 2016
  494. presidential election, Cohen made a payment of $130,000 from a limited liability corporation
  495. ("LLC") to Stephanie Clifford, an individual who is alleged to have had an extramarital affair with
  496. then-candidate Trump. This payment was made to Clifford in exchange for an agreement not to
  497. make any public disclosures about her alleged affair with Trump. As set forth below, there is
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  502. probable cause to believe that Cohen made this payment to Clifford for the purpose of influencing
  503. the presidential election, and therefore that the payment was an excessive in-kind contribution to
  504. the Trump campaign.
  505. 15. Based on my review of emails obtained from the Cohen Email Warrants,
  506. information obtained pursuant to the iCloud Warrant, and documents produced pursuant to
  507. subpoenas, as well as my review of public sources, I have learned that Cohen has used the Subject
  508. Premises to (a) receive documents related to the transaction intended to relieve Cohen of his taxi
  509. medallion debt, (b) receive documents and/or conduct meetings related to his consulting work, (c)
  510. receive documents-and/or conductmeetings-relating to
  511. noted above and as detailed further herein, he has concealed from the banks in connection with the
  512. refinancing of his taxi medallion debt, (d) receive and send documents relating to his payment to
  513. Clifford, and (e) house and operate electronic devices that were utilized in connection with, among
  514. other things, the taxi medallion transaction, Cohen's consulting work, and his payment to Clifford.
  515. Specifically, as described below, Subject Premises-I likely contains evidence concerning Cohen's
  516. taxi medallion loans, his negotiations with banks, his personal finances, his consulting work, his
  517. tax returns, and his payment to Clifford, as well as electronic devices containing such evidence,
  518. all of which constitute or contain evidence of the Subject Offenses. Additionally, as described
  519. below, Subject Premises-2 likely contains evidence relating to Cohen's consulting work, his
  520. finances, and his payment to Clifford, as well as electronic devices containing such evidence.
  521. Subject Premises-3, as described below, likely contains evidence relating to Cohen's assets and
  522. finances, including assets that may not have been disclosed to banks in connection with the
  523. refinancing of Cohen's taxi medallion debt or documents relating to such assets, and documents
  524. or evidence related to Cohen's payment to Clifford. Subject Premises-4 likely contains electronic
  525. 10
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  529. devices, including Subject Device-I and Subject Device-2, which themselves contain evidence of
  530. the Subject Offenses, including concerning Cohen's taxi medallion loans, his negotiations with
  531. banks, his personal finances, his consulting work, his tax returns, and his payment to Clifford.
  532. Accordingly, and as set forth in more detail below, there is probable cause to believe that the
  533. Subject Premises and Subject Devices will include evidence of the Subject Offenses.
  534. 7
  535. B. Probable Cause Regarding Subjects' Commission of the Subject Offenses
  536. The Bank Fraud Scheme
  537. (i) Cohen 's Statements to Sterling National Bank
  538. 16 As-set-forth-in-detaiLbelow, LLCs controlled by him and
  539. his wife, Laura Cohen, entered into a series of loans from Sterling National Bank ("Sterling") and
  540. the Melrose Credit Union ("Melrose"), secured by taxi medallions, for approximately $20 million.
  541. Though entered into by LLCs, the loans were also secured by personal guarantees in the names of
  542. both Cohen and his wife. Over time, as the taxi industry weakened and the medallions lost value,
  543. Cohen sought to renegotiate the terms of those loans and/or relieve himself from their obligations,
  544. including the personal guarantees. As part of that effort, Cohen made a series of representations
  545. to Sterling and Melrose about his net worth, assets, available cash and income, among other things.
  546. Specifically, based on my review of records maintained by Sterling and Melrose, and public
  547. sources concerning the taxi industry and the value of taxi medallions, as well as my participation
  548. in interviews with a Sterling executive vice-president (the "Sterling Employee-I") and two other
  549. 7 In the following recitation of probable cause, I frequently refer to phone calls or text messages
  550. involving Cohen. The text messages described herein as sent or received by Cohen were all sent
  551. or received from the telephone numbers associated with Subject Device-I or Subject Device-2.
  552. The vast majority of the phone calls described herein made or received by Cohen were made or
  553. received by the telephone numbers associated with Subject Device-I or Subject Device-2, although
  554. in ceftain limited instances Cohen used a landline or other phone.
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  559. Sterling employees ("Sterling Employee-2" and "Sterling Employee-3"), I have learned, among
  560. other things, the following:
  561. a. Taxi medallions are small metal plaques affixed to taxis. Without a medallion, it
  562. is illegal to operate ataxi in cities with medallion systems, such as New York City. Cohen and his
  563. wife own multiple LLCs that collectively own 32 taxi medallions (each LLC owns two
  564. medallions).g Cohen's purchase of these New York taxi medallions was originally financed by
  565. loans from Capital One bank, for which the medallions served as collateral. Cohen was not a taxi
  566. operator, and leased his medallions to a third party. That third party made monthly payments to
  567. Cohen, make-his-monthly loan payments-to Capital
  568. One.
  569. b. In early 2014, Cohen became a customer of Sterling when he sought to refinance a
  570. mortgage on a rental property that he owned. In or around April 2014, Cohen raised with Sterling
  571. the prospect ofrefinancing his taxi medallion loans, which were then at Capital One. By in or about
  572. September 2014, Cohen began negotiating a lending transaction with Sterling that would allow
  573. Cohen to pay off his loans at Capital One and borrow more money from the then-increase in value
  574. of the medallions. According to Sterling Employee-I, in 2014, prior to the recent upheaval in the
  575. taxi industry—as a result of the emergence of ride-sharing services, such as Uber—taxi medallion
  576. loans were viewed by banks and investors as safe, shon term credits, as the market value of taxi
  577. medallions was consistently rising. Consequently, taxi medallion loans—like the loans held by
  578. Cohen—were frequently refinanced at increasing amounts as the value of the medallions rose.
  579. According to Sterling Employee-I, borrowers typically cashed out the increase in the loan amount
  580. 8 One of these companies, Mad Dog Cab Corp., was jointly owned by Sondra Cohen, who I
  581. believe is Cohen's mother.
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  586. I
  587. and used the additional fixnds for other purposes. Cohen appears to have followed this approach in
  588. 2014, when he agreed to refinance his medallion loans for approximately $22 million, which—
  589. according to letters from Capital One in Sterling's files—was greater than his previous debt at
  590. Capital One Bank ($21 million, of which $14.6 million was a line ofcredit to Cohen). This allowed
  591. Cohen to cash out the proceeds from the transaction.
  592. c. Based on my review of records maintained by Sterling, I have learned that on or
  593. about December 8, 2014, each ofCohen's sixteen taxi medallion LLCs entered into loan agreements
  594. and promissory notes with Sterling for the principal sum of $1,375,000, with repayment due on
  595. sole shareholder of the LLC. The address listed for each of the LLCs was the address for Subject
  596. Premises-I. The loans were also each secured by a security agreement, dated the same day, making
  597. the medallions collateral for the notes. To give Sterling additional security, Michael and Laura
  598. Cohen signed personal guarantees and confessions of judgment, giving Sterling the right to pursue
  599. collection against the Cohens' personal assets were their corporations to default under the loan
  600. agreements. The personal guaranty agreements stated that the LLCs had offices at the address for
  601. Subject Premises-I, and contained a notice provision that stated that any notices required by the
  602. agreements should be mailed to Subject Premises-I. In total, Sterling agreed to lend approximately
  603. $22 million to the Cohens' companies.
  604. d. Pursuant to participation agreements, Sterling transferred 45 percent of Cohen's
  605. taxi medallion debt to Melrose.9
  606. 9 Melrose, which had a business principally focused on taxi medallion loans, is now in
  607. conservatorship by the National Credit Union Administration ("NCUA").
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  612. e. In evaluating Cohen's requested refinancing of the taxi medallions, Sterling (and
  613. Melrose, consistent with its participation in the deal) conducted due diligence. At Sterling's
  614. request, Cohen provided Sterling with a statement of financial condition, dated August 1, 2014
  615. (the "August 2014 Financial Statement"), which indicated that Cohen had $100,740,000 in total
  616. assets, $23,550,000 in total liabilities, and a net worth of $77,190,000.10 From my review of a
  617. Sterling credit memorandum, dated September 29, 2014, I know that Sterling viewed the
  618. transaction favorably because, accounting for loan payments, cash flows from the medallions were
  619. projected to be positive, the value ofthe collateral (as estimated by Sterling) exceeded $42 million,
  620. and-the-net-worth agreements==was
  621. over $77 million. An internal Sterling credit and risk rating analysis report, dated October 20,
  622. 2014, recommended approval of the loans for substantially the same reasons.
  623. f. Based on my review of records maintained by Sterling and public sources, I have
  624. learned that over time, the collateral backing Cohen's loans (taxi medallions) lessened in value due
  625. to the rise in ride-sharing companies. Additionally, Cohen began falling behind on loan payments
  626. to Sterling and Melrose. I know from records maintained by Sterling and an interview with Sterling
  627. Employee-2 that, beginning in or around September 2015, Cohen told Sterling, in sum and
  628. substance, that the individual leasing Cohen's medallions had fallen behind in making payments to
  629. Cohen, and that as a result, the monthly cash flow from his taxi medallions had been reduced,
  630. leaving him with a shortfall of approximately $16,000 each month. For instance, I have reviewed
  631. an email from Sterling Employee-2, dated September 9, 2015, summarizing a call with Cohen—
  632. which according to the email and toll records for Cohen's cellphone occun•ed on September 8,
  633. 10 Cohen subsequently provided Sterling with a revised statement of financial condition, also
  634. dated August 1, 2014, which repolted assets of $99,420,000, total liabilities of $23,550,000, and a
  635. net worth of $75,870,000.
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  640. 2015—during which Cohen told Sterling Employee-2, in sum and substance, about his cash flow
  641. problems and a monthly shortfall of approximately $16,000. In that same email, Sterling
  642. Employee-2 commented that despite Cohen's statements, his personal financial information
  643. "indicate[d] a strong ability to make up the difference in payments." Cohen, however, according
  644. to Sterling Employee-2, puslled the bank for a reduction in Cohen's monthly payments.
  645. g. From my review of records maintained by Sterling and my participation in an
  646. interview with Sterling Employee-2, I have learned that Cohen and Sterling Employee-2 spoke
  647. again on September 28, 2015, and that during the call Cohen stated, in sum and substance, that the
  648. individual-to whom-Cohen-leases-the-medallions-had-agaimreduced-monthlypayments to-Cohen
  649. know from my review of records maintained by Sterling that between in or about September 2015
  650. and November 2015, Sterling raised the possibility—both internally and with Cohen—of Cohen
  651. posting his real estate holdings, personal residence, or some other collateral as additional security
  652. for the banks.ll According to these records, however, Cohen resisted these requests. From my
  653. review of loan documents and records maintained by Sterling, I know that in or about November
  654. 2015, as a result of Cohen's representation that he was not earning sufficient returns on his
  655. medallions to cover monthly interest payments, Sterling and Melrose agreed to amend their loans
  656. with Cohen by, among other things, reducing the interest rate Cohen paid to Melrose and extending
  657. the loan maturity date to December 8, 2017.
  658. h. I know from interviews with Sterling Employee-I and Sterling Employee-2, as well
  659. as emails I have reviewed, that in or about October 2016, Cohen told Sterling Employee-I that
  660. Cohen had a potential buyer of his taxi medallions, named
  661. who would agree to
  662. 11 Based on my review of property records, I know that on or about October 28, 2015, around
  663. the time period when Sterling raised the possibility of Cohen posting his personal residence—
  664. Subject Premises-I—as collateral, Cohen transferred Subject Premises-I into a trust.
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  669. assume Cohen's debt with Sterling and Melrose. Based on my review of records maintained by
  670. Sterling, as well as the interviews with Sterling Employee-I and Sterling Employee-2 referenced
  671. above, I know that by or before October 2016, Cohen had entered into negotiations to sell his sixteen
  672. taxi medallion entities to
  673. for the balance of the loans, which at the timewas $21,376,000. I know from my review ofrecords
  674. maintained by Sterling, and my participation in an interview with Sterling Employee-2, that as a
  675. condition of the transfer of the medallion loans—and because Sterling was unfamiliar with
  676. -Sterling requested that Cohen make a substantial principal payment on the loan, of
  677. —approximately-one million-dollars-prior-to the transfer. Cohewrejected this-request-initially—But—
  678. on or about January 31 , 2017, Cohen told Sterling Employee-I, in sum and substance, that he would
  679. make a one million dollar principal reduction payment in order to move forward with the medallion
  680. deed' in an email sent by Cohen to Sterling Employee-2 on or
  681. transfer deal with
  682. about February 22, 2017, Cohen confirmed that he "agreed to pay down 1 million from the loan
  683. amount."
  684. i. Pursuant to the participation agreements between Sterling and Melrose, Sterling
  685. was required to secure Melrose's agreement to participate in the transfer of the taxi medallion debt
  686. from Cohen to
  687. On or about April 17, 2017, Sterling sent a memorandum to
  688. Melrose summarizing the terms of the proposed transaction, and noting the requirement that
  689. Melrose agree to the terms. On or about May 2, 2017, Sterling Employee-I told
  690. that Melrose had agreed to the deal in principle, and that Sterling would be sending the parties a
  691. term sheet shortly.
  692. j. In order for the banks to conduct diligence and evaluate the proposed transaction
  693. fully, they requested financial information from the parties. On or about June 7, 2017, Sterling
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  698. Employee-I emailed Cohen to request an "updated personal financial statement," completed
  699. jointly with Cohen's wife, and Cohen's most recent federal income tax return. On or about June
  700. 8, 2017, Cohen emailed Sterling Employee-I a Sterling personal financial statement form that had
  701. been filled out by hand, which referenced a statement of financial condition, dated May 1, 2017
  702. (the "May 2017 Financial Statement") that was also attached. The May 2017 Financial Statement
  703. included a cover letter from Cohen's accountant, Jeffrey Getzel, stating, in sum and substance, that
  704. the information in the statement came from Cohen and that Getzel had not confirmed its accuracy
  705. or completeness. The May 2017 Financial Statement stated that Cohen had total assets of
  706. Financial Statement indicated that Cohen's assets were comprised of $1,250,000 in cash,
  707. $26,155,000 in closely held companies (such as the taxi medallion entities and his real estate
  708. holdings), $3,200,000 in real estate investments, and his $11,000,000 personal residence.12
  709. k. Based on my review of reports of law enforcement interviews of Sterling
  710. Employee-I, I have learned that Sterling Employee-I reviewed the May 2017 Financial Statement
  711. with Cohen to, among other things, verify its accuracy, and Sterling Employee-I asked Cohen about
  712. specific line items on the financial statement, including the cash amount, value of medallions, and
  713. total liabilities. Cohen stated to Sterling Etnployee-l, in sum and substance, that the May 2017
  714. Financial Statement was accurate.
  715. l. On or about August 16, 2017, Sterling Employee-I emailed Cohen and
  716. ttaching a non-binding term sheet memorializing the potential transaction between
  717. 12 Based on my review of Cohen's financial statements, I know that the precipitous decline in
  718. assets from his 2014 financial statement to his 2017 financial statements can be explained
  719. primarily by reported depreciation in the value of Cohen's real estate assets and medallion
  720. investments.
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  725. Sterling, Melrose, Cohen, an
  726. The term sheet included a cover letter addressed
  727. to Cohen at Subject Premises-I. The palties negotiated the provisions of the term sheet and, on or
  728. about September 5, 2017, Sterling Employee-I sent
  729. executed term sheet. According to the tenn sheet,
  730. from Sterling and Melrose, to be secured by the medallions that
  731. Cohen.
  732. and Cohen a copy of the
  733. would borrow $20,000,000
  734. was to acquire from
  735. m. As part of the agreement, according to the term sheet, $1,265,913 in principal (which
  736. is what would remain after the $20,000,000 payment on the outstanding loan balance) would be
  737. repaid-by-Cohen-and-twtwo-bank*-with Cohempaying fiftypercent and the-banks-dividing th
  738. remaining half of the balance. Based on my review ofan internal Sterling credit memorandum,
  739. dated October 4, 2017, the parties reached a preliminary agreement that Cohen would pay $632,956
  740. of the remaining $1,265,912 principal loan balance, and Sterling and Melrose would absorb
  741. $357,167 and $275,789, respectively, in the form of charge-offs. According to Sterling Employee-
  742. 1, Sterling was willing to divide the repayment of the outstanding principal balance—despite its
  743. prior insistence that Cohen make a principal pay-down of at least one million dollars—because
  744. Cohen represented on a telephone call with Sterling Employee-I, in sum and substance, that he had
  745. insufficient liquidity to pay the full outstanding principal balance. As part ofthe agreement, Sterling
  746. and Melrose also agreed to relieve Cohen and his wife of the personal guarantees that they made
  747. on behalf of the LLCs. Thus, after completing the
  748. transaction, Cohen would no longer
  749. have had any outstanding obligations to Sterling or Melrose.
  750. n. Based on my review of emails sent by Sterling employees, I have learned that
  751. because the transaction between the patties was subject to full credit underwriting by Sterling and
  752. Melrose (as well as Melrose's regulators at NCUA), in August and September 2017, Sterling
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  757. required and requested additional financial statements and tax returns for Cohen and
  758. for its credit underwriting process. In response to Sterling's requests, on or about September 25,
  759. 2017, Cohen emailed Sterling Employee-2 a copy of his 2016 tax return. The tax return listed
  760. Cohen's mailing address as Subject Premises-I. Additionally, on or about October 5, 2017, Cohen
  761. re-sent Sterling Employee-2 a copy of his May 2017 Financial Statement. A day later, on October
  762. 6, 2017, Cohen emailed Sterling Employee-2 a statement of financial condition, dated September
  763. 30, 2017 (the "September 2017 Financial Statement").
  764. o. Like the May 2017 Financial Statement, the September 2017 Financial Statement
  765. include&æeoverletterfrom and substancehth
  766. the information in the statement came from Cohen, and that Getzel had not confirmed its accuracy
  767. or completeness. The September 2017 Financial Statement stated that Cohen had total assets of
  768. $33,430,000, total liabilities of $45,630,000, and a negative net worth of $12,200,000.13 Notably,
  769. unlike Cohen's May 2017 Financial Statement, the September 2017 Financial Statement
  770. represented to Sterling that Cohen had a negative net worth. The September 2017 Financial
  771. Statement indicated that Cohen's assets were comprised of in cash, $17,630,000 in
  772. closely held companies (including the taxi medallion entities and his real estate holdings), 14
  773. $3,200,000 in real estate investments, and his $11,000,000 personal residence (which, for the first
  774. 13 Based on my review of Cohen's financial statements, I know that this further decline in
  775. assets can be explained primarily by reported depreciation in the value of Cohen's real estate assets
  776. and medallion investments.
  777. 14 Notably, the September 2017 Financial Statement valued each of Cohen's thirty-two New
  778. York taxi medallions at approximately $180,187.50, which was considerably less than the
  779. term sheet.
  780. $650,000 valuation ascribed to each medallion in the Cohen-
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  785. time, he indicated was held by The September 2017 Financial Statement included assets
  786. and liabilities not held in Cohen's name, such as various entities associated with his taxi medallions
  787. and some of his real estate investment entities.
  788. p. From myparticipation in an interview with Sterling Employee-2, and my review of
  789. records maintained by Sterling, I have also learned that around the time Cohen provided Sterling
  790. with these financial statements—i.e., in or around September 2017—Cohen stopped paying
  791. monthly loan payments on his taxi medallion loans altogether. According to Sterling Employee-
  792. 2, Cohen informed Sterling, in sum and substance, that he had insufficient funds to pay the monthly
  793. principal-and-interest payments-on-his-medallion-loans.-By-in-0E about-Decembep201-7wSter1ing
  794. and Melrose had not been paid approximately $276,937.92 in monthly principal and interest
  795. payments on the medallion loans. Based on Cohen's financial condition as conveyed in the
  796. September 2017 Financial Statement, and his delinquency in making payments to Sterling, among
  797. other things, the bank's credit underwriting committee determined (and memorialized in a
  798. December 2017 memorandum) that the Coher
  799. ransaction was favorable for the bank
  800. — that is, that
  801. would be a better borrower than Cohen.
  802. q. On or about December 26, 2017, Sterling sent Cohen a demand letter requesting
  803. the immediate receipt of past-due loan payments. The demand letter was addressed to Cohen at
  804. Subject Premises-I. On December 29, 2017, Sterling sent Cohen a letter stating that he was in
  805. default under the loans between Sterling and Cohen's medallion corporations. The notice of
  806. default was addressed to Cohen at Subject Premises-I. Cohen did not make an immediate payment
  807. on the loans, but instead sent an e-mail to Sterling Employee-I on or about January 24, 2018,
  808. 15 Based on my review of property records maintained by the City of New York, and my
  809. participation in an interview with Getzel, I know that in 2015, Cohen transferred his residence to
  810. a trust. He did not disclose that transaction to Getzel or Sterling until in or about September 2017.
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  815. stating that during the closing of the Cohen-
  816. ransaction, Cohen would ' 'bring all
  817. payments up to date as well as deposit the payoff differential." Cohen also requested by email on
  818. January 24, 2018, that at the closing of the Cohen,
  819. transaction, Sterling provide a letter
  820. stating that all of Cohen's debts have been satisfied and that Cohen's personal guarantees of the
  821. medallion loans had been terminated.
  822. r. The Cohen
  823. 29, 2018,
  824. transaction, however, did not close. On or about January
  825. attomey emailed attorneys for Sterling and stated that "at this time
  826. there is no deal with Michael Cohen. Some of the numbers have changed and we are not prepared
  827. to go-forward. 'E
  828. s. Based on my participation in the interview with Sterling Employee-2 and my
  829. review of records maintained by Sterling, I know that after the Cohen,
  830. deal fell apart,
  831. Sterling assigned Cohen's loans to Sterling Employee-3, who specializes in collecting on
  832. defaulting loans. From my participation in an interview with Sterling Employee-3, my review of
  833. telephone call notes taken by Sterling Employee-3, and my review of telephone records, I know
  834. that Sterling Employee-3 spoke several times to Cohen on or about January 30, 2018 about paying
  835. down and/or restructuring Cohen's outstanding taxi medallion loans. On the calls, which in total
  836. lasted more than an hour, Cohen stated in sum and substance that he did not have more than
  837. $1,250,000 to pay toward the medallion loans. On the call, in the course of reviewing the failed
  838. Cohen-
  839. transaction, Sterling Employee-3 questioned Cohen about the price
  840. was to have paid for each medallion, and whether there was a side agreement between
  841. Cohen denied that there was any side agreement with—
  842. Cohen and
  843. t. On or about January 31, 2018, Cohen emailed Sterling Employee-3 and proposed
  844. paying $500,000 to bring the loans current and $750,000 to bring the principal balance to
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  849. $20,500,000. Cohen also suggested revised monthly interest payment amounts. The signature
  850. block on the email indicated that Cohen's address was the address for Subject Premises-2. On or
  851. about January 31, 2018, Sterling Employee-3 responded to Cohen and stated, in sum and
  852. substance, that Cohen would need to pay the entirety of the overdue payments and pay down the
  853. principal balance of the loan to $20,000,000 (in total, a payment of approximately $1,750,000),
  854. and would need to make larger monthly interest payments.
  855. u. On or about February 1, 2018, Cohen emailed Sterling Employee-3 and proposed
  856. "[p]ayment of $1.250m which ALL can be used to pay down principal, if [Sterling] will waive
  857. —past-due-amounts," original.)
  858. Cohen also stated, in sum and substance, that he had insuffcient financial resources to post
  859. additional collateral or pre-fund monthly payments. The signature block on the email indicated
  860. that Cohen's address was the address for Subject Premises-2. Based on my participation in an
  861. interview with Sterling Employee-3, I have learned that since January 30, 2018, Sterling has
  862. continued to renegotiate the medallion loans with Cohen based on Cohen's representations about
  863. his current financial position. In particular, according to Sterling Employee-3, Cohen and Sterling
  864. have an agreement in principal to restructure Cohen's loans based in part of Cohen's agreement to
  865. make a principal payment of approximately $750,000, to make a payment of $500,000 to become
  866. cun•ent on interest payments, and to post $192,000 in cash collateral for his future monthly
  867. payments on the loan. Cohen also agreed to pledge an interest he had in a property. Sterling
  868. Employee-3 has stated that had Cohen indicated he had more than $1,250,000 available to him,
  869. Sterling would have, among other things, negotiated for a larger reduction to the principal amount
  870. of the loan.
  871. 22
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  875. (ii) Cohen Made Material Misrepresentations About His Finances to Banks
  876. Cohen Concealed from Sterling and Melrose Cash Derived from Consulting Work
  877. 17. As set forth in detail below, despite multiple written and oral representations by
  878. Cohen to Sterling (and, by extension, Melrose16) that he had insufficient funds to pay down the
  879. principal balance of the medallion loans, make monthly interest payments, or pay past-due
  880. amounts, it appears that between 2016 and the present, Cohen opened and maintained bank
  881. accounts at First Republic Bank ("First Republic"), and then received millions of dollars in
  882. consulting payments in these accounts, which he did not disclose to Sterling. Cohen set up these
  883. imyhichlmenadedisclosures to Sterling
  884. about his personal finances (including his assets and liabilities) and his ability to make payments
  885. on the medallion loans. In these disclosures to Sterling—and despite being asked about these bank
  886. accounts by his accountant—Cohen misled the bank by claiming he had insufflcient liquidity to
  887. satisfr his obligations or meet the bank's demands, while withholding information about these
  888. ongoing revenue streams and liquid financial assets at First Republic.
  889. Specifically, based on my review of documents and bank records produced
  890. 18.
  891. pursuant to a subpoena by First Republic, and my participation in and review of reports of
  892. interviews with a First Republic sales manager ("First Republic Employee-I ") and a First Republic
  893. senior managing director ("First Republic Employee-2"), I have learned, among other things, the
  894. following:
  895. 16 Based on my review of a report of an interview conducted with an employee of Melrose, I
  896. have learned that, pursuant to the participation agreement between Sterling and Melrose, Cohen's
  897. financial statements and other records in Sterling's possession were forwarded to Melrose so that
  898. Melrose could make a detennination as to whether to approve of the Cohen-
  899. transaction. Based on my review of reports of interviews with Melrose employees, also know
  900. that Cohen called employees at Melrose regarding the Cohen—
  901. ransaction.
  902. 23
  903. 2017.08.02
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  906. a. Cohen and his wife have been customers of First Republic since approximately
  907. June 2011. Cohen controls several checking and loan accounts at First Republic, some in his own
  908. name and others in the names of corporate entities. According to First Republic's know-your-
  909. customer records on Cohen, 17 his primalY physical address is the address for Subject Premises-I.
  910. b. On or about October 26, 2016, in Manhattan, New York, Cohen opened a new
  911. checking account at First Republic in the name of Essential Consultants LLC (the "Essential
  912. Consultants Account"). Cohen was the only authorized signatory on the account. According to
  913. account opening documents, the primary address for Essential Consultants LLC was the address
  914. orSubject Premises-I-AVhen-Cohen-opened the-Essential-Consultants-Aceount,-First Republi
  915. Employee-I conducted an in-person interview of Cohen. In response to a series of know-your-
  916. customer questions about the purpose of the account—the answers to which First Republic
  917. Employee-I entered into a form18 Cohen stated, in sum and substance, that he was opening
  918. Essential Consultants as a real estate consulting company to collect fees for investment consulting
  919. work, and all of his consulting clients would be domestic individuals based in the United States.
  920. Cohen also stated, in sum and substance, that his purpose in setting up the account was to keep the
  921. revenue from his consulting business—which he said was not his main source ofincome—separate
  922. from his personal finances. As set forth below, there is probable cause to believe that Cohen's
  923. statements about the intended purpose of the account and source of funds for the account were
  924. false. Specifically, as described below, the account was not intended to receive—and does not
  925. 17 Certain financial institutions are required to conduct such procedures pursuant to the Bank
  926. Secrecy Act and its implementing regulations. See 31 U.S.C. 5318; 31 C.F.R. 1020.220.
  927. 1 8 First Republic Employee-I first filled out the form on the day he interviewed Cohen, October
  928. 26, 2016. On or about December 19, 2016, at the request of bank compliance personnel, First
  929. Republic Employee-I updated the form to add more detail about Cohen's statements.
  930. 24
  931. 2017.08.02
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  934. appear to have received—money in connection with real estate consulting work; in addition, the
  935. account has received substantial payments from foreign sources.
  936. c. I know from my review of First Republic bank records that were scheduled by an
  937. FBI forensic accountant that after Cohen opened the Essential Consultants Account, Cohen
  938. received payments into that account from foreign businesses and entities that do not reflect the
  939. stated client profile for the residential and commercial real-estate consulting services. Specifically,
  940. from my review of the Essential Consultants Account schedule and public sources, I know the
  941. following:
  942. i Beginning-on-or-abouLJanuary
  943. payments of $83,333 into the Essential Consultants Account from an entity called Columbus Nova
  944. LLC. According to public sources, Columbus Nova is an investment management firm controlled
  945. by Renova Group, an industrial holding company based in Zurich, Switzerland that is controlled
  946. by Russian national Viktor Vekselberg. From January 2017 to August 2017, the Essential
  947. Consultants Account received seven payments totaling $583,332.98 from Columbus Nova LLC.
  948. ii. Beginning on or about April 5, 2017, the Essential Consultants Account
  949. began receiving payments from Novaltis Investments, SARL, which I believe to be the in-house
  950. financial subsidiary of the Swiss pharmaceutical company Novartis International AG ("Novafiis").
  951. Between April 2017 and February 2018, the Essential Consultants Account received eleven wire
  952. payments from a Swiss bank account held in the name of Novartis, each in the amount of $99,980,
  953. for a total of $1,099,780.
  954. iii. Beginning in or about April 2017, the Essential Consultants Account started
  955. receiving wire payments from a bank account associated with the telecommunications company
  956. AT&T Inc. ("AT&T'). Specifically, on or about April 14, 2017, AT&T sent $100,000 to the
  957. 25
  958. 2017.08.02
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  961. Essential Consultants Account and, from in or about June 2017 to in or about January 2018, the
  962. Essential Consultants Account received ten $50,000 payments from AT&T. In total, AT&T sent
  963. $600,000 to the Essential Consultants Account.
  964. iv. On or about May 10, 2017, June 9, 2017, July 10, 2017, and November 27,
  965. 2017, the Essential Consultants Account received four deposits in the amount $150,000 (totaling
  966. $600,000) from a bank account in South Korea. The account holder from which the money was
  967. sent is Korea Aerospace Industries Ltd. ("KAI"). KAI is a South Korea-based company that
  968. produces and sells fixed-wing aircraft, helicopter aircraft, and satellites to the United States
  969. v. On or about May 22, 2017, the Essential Consultants Account received a
  970. $150,000 deposit from an account at Kazkommertsbank, a Kazakhstani bank. The listed account
  971. holder at Kazkommertsbank was a second Kazakhstani bank named BTA Bank, AO. A message
  972. accompanying the wire payment indicated that the payment was a "monthly consulting fee as per
  973. Inv BTA-IOI DD May 10, 2017 consulting agreement wm DD 08 05 2017 CNTR W/'NDD
  974. 08/05/2017."
  975. vi. In total, from on or about January 31, 2017 toon or about February 1, 2018,
  976. the Essential Consultants Account received approximately $3,033,112.98 in transfers and checks
  977. from the aforementioned entities. As of on or about January 10, 2018, the balance in the Essential
  978. Consultants Account was $1,369,474.23. Cohen's withdrawals from the Essential Consultants
  979. account reveal that it was used for largely personal purposes, including to pay, among other things,
  980. American Express bills and fees from "the Core Club," a private social club in New York.
  981. d. On or about April 4, 2017, Cohen opened another new checking account at First
  982. Republic, this one in the name of Michael D. Cohen & Associates, P.C. (the "MDC&A Account").
  983. 26
  984. 2017.08.02
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  987. Cohen was the only authorized signatory on the account. According to account opening
  988. documents, the primary address for MDC&A Account was the address for Subject Premises-I.
  989. Among other things, the MDC&A Account received ten wire transfers and one check from an
  990. account in the name of Squire Patton Boggs, a law firm. As noted above, Subject Premises-2 is
  991. located inside the New York office of Squire Patton Boggs. In total, from on or about April 5,
  992. 2017, to on or about January 2, 2018, the MDC&A Account received $426,097.70 in deposits, and
  993. the balance in the account as of January 2, 2018, was $344,541.35. As discussed below, Cohen
  994. never disclosed any of the balance in the Essential Consultants or lvDC&A accounts to Sterling
  995. ansactiorvowthe•ubsequent--lo
  996. refinancing negotiations, including in his May 2017 Financial Statement and September 2017
  997. Financial Statement.
  998. 19. Based on my review of emails that were seized pursuant to the Cohen Email
  999. Warrants, and my review of reports of interviews with employees of AT&T and Novartis, it
  1000. appears that the aforementioned payments to the Essential Consultants Account and IvfDC&A
  1001. Account were for political consulting work, including consulting for international clients on issues
  1002. pending before the Trump administration. Specifically, from my review ofemails from the Cohen
  1003. Gmail Account, the Cohen N4DCPC Account, and public sources, I have learned the following:
  1004. a. On or about April 28, 2017, Cohen sent an email to an individual whom I believe
  1005. is affiliated with KAI. In the email, Cohen attached a "Consulting Agreement" between KAI and
  1006. Essential Consultants dated as of about May 1, 2017. The agreement indicates that Essential
  1007. Consultants had the address of Subject Premises-2. The document indicates that Essential
  1008. Consultants would render "consulting and advisoryr services, as requested" by KAI, and that KAI
  1009. would pay Essential Consultants "a consulting fee of One Million Two Hundred Thousand
  1010. 27
  1011. 2017.08.02
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  1014. ($1,200,000.00) US Dollars," disbursed through eight $150,000 installments between May 2017
  1015. and December 2017. I have also reviewed invoices in amounts of $150,000 that Cohen emailed
  1016. to an individual whom I believe is affiliated with KAT. At the top of the invoices the address listed
  1017. for Essential Consultants is the address for Subject Premises-2.
  1018. b. On or about May 8, 2017, Cohen sent an email to an individual whom I believe is
  1019. affiliated with BTA Bank. The signature block on Cohen's email listed "Essential Consultants
  1020. LLC" and "Michael D. Cohen & Associates, PC" and provided the address for Subject Premises-
  1021. 2. In the email, Cohen attached a document purporting to be a "Consulting Agreement" between
  1022. BTABankand-EssentiaLConsultants dated asofaboutMay
  1023. Essential Consultants had the address of Subject Premises-2. The document indicates that
  1024. Essential Consultants would render "consulting and advisory services" to BTA Bank, and that
  1025. BTA Bank would pay Essential Consultants "a consulting fee of One Million Eight Hundred
  1026. Thousand ($1,800,000.00) US Dollars," disbursed through monthly payments of $150,000. On or
  1027. about May 10, 2017, Cohen sent an email to an employee ofBTA Bank, and attached to the email
  1028. an invoice to BTA Bank in the name ofEssential Consultants, with the address of Subject Premises-
  1029. 2. The invoice contemplated a $150,000 payment to Essential Consultants for a "monthly
  1030. consulting fee."
  1031. c. On or about January 23, 2017, Cohen appears to have entered into a consulting
  1032. agreement with AT&T, which contemplates that Essential Consultants "shall render consulting and
  1033. advisory services to [AT&T]" and that AT&T would "advise [Essential Consultants] ofthose issues
  1034. and matters with respect to which AT&T Services desires [Essential Consultants] 's assistance and
  1035. advice." The agreement indicates that Essential Consultants had the address of Subject Premises-
  1036. I. The contract calls for AT&T 'to pay the Consultant for his services ... a consulting fee of Fifty
  1037. 28
  1038. 2017.08.02
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  1041. Thousand ($50,000) Dollars ... per month." Based on my review of reports of interviews with
  1042. AT&T employees, I have learned that AT&T retained Cohen to consult on political issues,
  1043. including net neutrality, the merger between AT&T and Time Warner, and tax reform.
  1044. d. On or about March 1, 2017, Cohen appears to have entered into a contract between
  1045. Novartis and Essential Consultants, which provides that Essential Consultants will "provide
  1046. consulting and advisory services to Novartis on matters that relate to the repeal and replacement of
  1047. the Affordable Care Act in the US and any other issues mutually agreeable to [Essential
  1048. Consultants] and Novartis." The conü•act provides for a "consulting fee of One Million Two
  1049. dollars,"
  1050. installments over the course of a year. Based on my review of reports of interviews with Novartis
  1051. employees, I have learned that Novartis retained Cohen to provide political consulting services and
  1052. to gain access to relevant policymakers in the Trump Administration.
  1053. e. In or about February 2017, Cohen began negotiating the terms of a "strategic
  1054. alliance" with Squire Patton Boggs. On or about March 4, 2017, Squire Patton Boggs emailed
  1055. Cohen a "strategic alliance agreement." Under the terms of the agreement, Cohen agreed to
  1056. generate business for the law film, and Squire Patton Boggs agreed to pay to Cohen "an annual
  1057. strategic alliance fee of $500,000, payable in twelve (12) equal monthly installments." Squire
  1058. Patton Boggs also agreed to provide Cohen with "dedicated and segregated office space in [Squire
  1059. Patton Boggs's] New York and Washington D.C. offces, which office space shall be physically
  1060. separate from [Squire Patton Boggs's] offices and have locked doors and its own locked file
  1061. cabinets." On or about April 3, 2017, Squire Patton Boggs announced on its website that is had
  1062. formed a "strategic alliance" with Michael D. Cohen & Associates and would "jointly represent
  1063. clients."
  1064. 29
  1065. 2017.08.02
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  1068. 20. Despite the significant amount of money that Cohen received into the Essential
  1069. Consultants Account and the MDC&A Account, and the cash balance in both accounts, Cohen did
  1070. not disclose that information to Sterling or Melrose. Specifically, based on my review ofdocuments
  1071. provided by Getzel (as noted above, Cohen's accountant at the time), my participation in an
  1072. interview with Getzel, and my review of notes and
  1073. have leamed the following:
  1074. 1
  1075. a. In or about May 2017, Getzel met with Cohen at Subject Premises-2. At the
  1076. meeting, Cohen told Getzel, in sum and substance, that he had set up a law practice called Michael
  1077. and aconsulting-compamy-calle&EssentialConsultants LLCÆohen_
  1078. told Getzel, in sum and substance, that he expected to earn $75,000 per month in connection with
  1079. his law practice, and that he expected gross revenues for the consulting business to be between five
  1080. and six million dollars annually.
  1081. b. In or about October 2017, if not earlier, Getzel was preparing a personal financial
  1082. statement for Cohen. On or about October 6, 2017, Getzel sent an email to Cohen in which Getzel
  1083. wrote that "[alttached is a draft of the new PFS as of September 30, 2017" and attached a draft of
  1084. the September 2017 Financial Statement. The draft statement reflected that as of September 30,
  1085. 2017, Cohen had only $1,250,000 in cash, total assets ofapproximately $33,430,000 (comprised of
  1086. taxi medallion interests, real estate interests, and his personal residence and property), and liabilities
  1087. ofapproximately $45,630,000, leaving him purportedly over $12 million in debt. In the same email,
  1088. Gebel questioned Cohen, in sum and substance, about the fact that the financial statement did not
  1089. list any value associated with either the Essential Consultants Account or the MDC&A Account:
  1090. "[w]e did not add any value for you[rl two operating entities — Michael D. Cohen & Associates
  1091. 30
  1092. 2017.08.02
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  1095. POC [sic] and Essential Consultants LLC. Please advise whether or not these should be disclosed
  1096. and what value."
  1097. c. On or about October 6, 2017, Cohen called Getzel by telephone—which is reflected
  1098. on toll records for Cohen's cellphone—and told Getzel, in sum and substance, not to include
  1099. Essential Consultants or MDC&A in the September 2017 Financial Statement because they had no
  1100. value. On or about October 6, 2017, following the call with Getzel, Cohen, using the Cohen
  1101. Account, responded to Getzel's email with the answer "[l]ooks good to me." Cohen never directed
  1102. Getzel to make any changes to his cash position as listed in the September 2017 Financial
  1103. - Statement—ln-a-l etter-d addressed-to-Getzel,-Cohen-
  1104. the attached statement of financial condition and find it to be correct and consistent with the
  1105. representations that I made to your film. The attached is an accurate reflection of my assets,
  1106. liabilities and net worth (deficit) as of September 30, 2017." Attached to that letter was the
  1107. September 2017 Financial Statement, which, as noted above, was then transmitted to Sterling in
  1108. connection with the proposed taxi medallion transaction between Sterling, Cohen, and
  1109. 21. Based on my review of a report of an interview with Sterling Employee-I, I have
  1110. learned that Cohen did not disclose his income stream from Essential Consultants to Sterling
  1111. Employee-I or, to his knowledge, anyone else at Sterling. According to Sterling Employee-I,
  1112. knowledge of such an income stream would have affected Sterling's demands during the
  1113. negotiations, particularly with respect to the amount of a principal paydown of Cohen's debt.
  1114. Cohen Understated His Available Cash
  1115. 22. In addition to withholding the existence of his Essential Consultants income from
  1116. Sterling and Melrose, it appears that Cohen also substantially understated his available cash and
  1117. cash equivalents in his financial disclosures. Specifically, I know from my review of the September
  1118. 31
  1119. 2017.08.02
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  1122. 2017 Financial Statement that Cohen provided to Sterling that Cohen represented that he had
  1123. $1,250,000 in cash as of September 30, 2017. I also know that on or about January 30, 2018, in a
  1124. telephone call with Sterling Employee-3, and on February 1, 2018, in an email to Sterling
  1125. Employee-3, Cohen represented that he did not have more than $1,250,000 in cash. But, from my
  1126. review of a summary ofbank records that were scheduled by forensic accountants, I have learned
  1127. that Cohen had approximately $5,000,000 in cash and cash equivalents as of September 30, 2017.
  1128. Additionally, as of February 1, 2018, Cohen had approximately $6,000,000 in cash and cash
  1129. equivalents. Specifically, from my review ofthe account schedule and bank records, I have learned
  1130. the following.
  1131. a. Cohen has three checking and/or savings accounts at Capital One Bank, one of
  1132. which is in his wife's name. As of September 30, 2017, Cohen had $1,105,680.35 in his savings
  1133. account, and $1,262,982.29 in total in the three accounts at Capital One Bank. As of February 1,
  1134. 2018, Cohen had a total of $1,389,245.78 in these accounts.
  1135. b. Cohen has three accounts at Morgan Stanley in his name. As of September 30,
  1136. 2017, the combined total in cash and cash equivalents in those tlu•ee accounts was $1,270,600.41.
  1137. As of February I, 2018, Cohen had $1,284.996.13 in these accounts.
  1138. c. As ofSeptember 30, 2017, Cohen had $260,689.18 inan accountat SignatureBank.
  1139. As of February 1, 2018, Cohen had $261,517.55 in this account.
  1140. d. In addition to the Essential Consultants Account and MDC&A Account at First
  1141. Republic, Cohen also had two joint checking accounts with Laura Cohen at First Republic. In total,
  1142. as of September 30, 2017, Cohen had at least $1,876,209.27 in total in his four accounts at First
  1143. Republic. As of February 1, 2018, Cohen had $3,332,992.95 in these accounts.
  1144. 32
  1145. 2017.08.02
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  1148. e. Cohen has an account at Bethpage Credit Union with $25,931.39 in it as of
  1149. September 30, 2017.
  1150. f. As of September 30, 2017, Cohen had $17,542.54 in accounts at Sterling.
  1151. g. Cohen has two accounts at TD Bank—one in his name and one held jointly with his
  1152. wife. Cohen also has a safety deposit box at TD Bank—Subject Premises-3. The safety deposit
  1153. box was opened on December 13, 2017 in the names of Michael and Laura Cohen.
  1154. h. In total, as of September 30, 2017, Cohen had at least $4,713,935.08 in his accounts
  1155. at Capital One Bank, City National Bank, Signature Bank, Sterling Bank, Bethpage Credit Union,
  1156. accounts at Capital One Bank, City National Bank, Signature Bank, First Republic, and Morgan
  1157. Stanley. 19
  1158. 23. Accordingly, based on the foregoing, it appears that Cohen's written and oral
  1159. representations to Sterling and Melrose that he did not have more than $ were false, and
  1160. that Cohen withheld information regarding approximately $5 million in fiands from Sterling and
  1161. Melrose in order to secure favorable terms in his renegotiation of his medallion loan. Based on
  1162. my participation in an interview with Sterling Employee-2, and Iny review ofreports of interviews
  1163. with Sterling Employee-I and two Melrose employees, it is my understanding that that Sterling
  1164. and Melrose would view Cohen's understating of his assets as material to its decision whether to
  1165. renegotiate Cohen's medallion loans and on what terms, or to its decision whether approve of the
  1166. transfer of those loans to
  1167. 19 Based on my review of the account schedules described above, I know that, as of the date of this
  1168. affidavit, the account balances for TD Bank have not yet been included in the schedule for either
  1169. date and the account balances for Sterling National Bank and Bethpage Credit Union have not yet
  1170. been included in the schedule for February 1, 2018. Thus, to the extent that these accounts have
  1171. positive balances, Cohen' s total balances in fact were even higher on these dates.
  1172. 33
  1173. 2017.08.02
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  1176. Cohen Has Unreported Interest Income
  1177. It appears that Cohen also hid from Sterling interest income that he was receiving in
  1178. connection with a six million dollar loan he made to another individual. Specifically, I know from
  1179. my review of the May 2017 Financial Statement and September 2017 Financial Statement that
  1180. Cohen provided to Sterling that Cohen did not disclose that he had made a note receivable in the
  1181. amount of approximately $6 million, or that he was earning approximately $60,000 per month in
  1182. interest income in connection with that loan. But, from my review ofa summary of bank records
  1183. that were reviewed by another law enforcement agent, my review of property records and
  1184. documents-obtained-pursuantto-thewCohen-EmaiLWarrants, an&myparticipation_in_amintervie
  1185. with Getzel, I have learned the following:
  1186. a. Based on my review of propelty records, I have learned that on or about March 12,
  1187. appr0Ximate1y
  1188. 2012, Cohen agreed to lend
  1189. $2,000,000.20 It appears that the promissory note was unsecured by any real property. On or about
  1190. April 28, 2014, Cohen and
  1191. amended the promissory note, and restructured the loan to
  1192. increase the principal amount to approximately $5,000,000. Under the terms of the amended
  1193. promissory note, the loan was secured
  1194. or about April 8, 2015, Cohen at
  1195. amount to $6,000,000.21
  1196. apartment in Sunny Isles Beach, Florida. On
  1197. restated the promissory note to increase the principal
  1198. b. Based on my review ofa copy ofthe restated note, which was obtained pursuant to
  1199. the Cohen Email Warrants, I have learned that under the terms of the amended and restated
  1200. 20 | learned from Getzel thal
  1201. 21 The note states that the loan is to
  1202. jointly and severally. For ease of reference, I refer simply to
  1203. 34
  1204. 2017.08.02
  1205. husband and wife,
  1206. herein.
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  1209. promissory note, Cohen's loan to—
  1210. is an interest-only loan, and that the principal balance
  1211. of the loan bears interest at an annual rate of 12.25 percent. I also know that the amended and
  1212. restated promissory note includes a schedule of payments that requirc
  1213. to pay Cohen
  1214. approximately $61,250 per month beginning in April 2015 and ending in April 2019. The note also
  1215. requires tha
  1216. repay the principal balance of $6,000,000 on April 28, 2019.
  1217. c. Based on my review of bank records, I have learned that, consistent with the terms
  1218. of the amended and restated promissory note,
  1219. has made monthly payments of
  1220. approximately $61,250 since April 2015. Specifically, based on my review of records maintained
  1221. from an entity called
  1222. totaling $61,250 per month, which he
  1223. deposited into his personal bank account at Capital One Bank.22 It appears from my review ofbank
  1224. records and public sources tha
  1225. is the owner of
  1226. From my review ofrecords maintained by Capital One Bank, I have also learned that since October
  1227. totaling
  1228. 2015, Cohen has received checks from an entity called
  1229. $61,250 per month, which he deposited into his personal bank account at Capital One Bank. It
  1230. is also the owner of
  1231. appears from my review of bank records and public sources that
  1232. In total, it appears that Cohen receives approximately $735,000 per year
  1233. in interest payments from
  1234. d. Based on my review of Cohen's May 2017 and September 2017 Financial
  1235. Statements, my review 6fhis 2015 and 2016 tax returns obtained via subpoena and from the Cohen
  1236. Email Warrants, and my participation in an interview with Getzel, I have learned that Cohen did
  1237. 22 In April 2015, Cohen received a pro-rated payment. For all months thereafter, the total payment
  1238. equaled $61,250,
  1239. iften made the payment in multiple checks.
  1240. 35
  1241. 2017.08.02
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  1244. not disclose this interest income he was receiving from
  1245. JO Sterling or Melrose, or list it
  1246. on his tax returns. I have also learned that while this interest income is taxable, Cohen did not tell
  1247. Getzel—his accountant—about the income, and Getzel only learned about the income because he
  1248. began doing
  1249. :axes in 2017.23
  1250. 25. Accordingly, based on the foregoing, it appears that Cohen's representations to
  1251. Sterling and Melrose that he did not have more than $1,250,000 were false, and that Cohen
  1252. withheld information relating to the interest income he is receiving from
  1253. order to
  1254. secure favorable terms in his renegotiation of his medallion loan.
  1255. Cohen-Had-a-Side-Agreement-With
  1256. 26. As set forth in detail below, during the course of Cohen's negotiations to sell his
  1257. interest in taxi medallions and the associated debt to
  1258. Cohen not only
  1259. misrepresented his financial position to Sterling, but also failed to disclose a side agreement he
  1260. had negotiated with
  1261. : it appears that
  1262. lgreed to pay an above-market price
  1263. for Cohen's taxi cab medallions, and in exchange, Cohen agreed to pay
  1264. approximately
  1265. $3.8 million in cash. Specifically, from my review ofdocuments produced pursuant to a subpoena
  1266. by Sterling, and my participation in interviews with Sterling Employee-I, Sterling Employee-2,
  1267. and Sterling Employee-3, I have learned, among other things, the following:
  1268. a. On or about September 5, 2017, an executed term sheet was circulated by Sterling
  1269. Employee-I to Cohen and
  1270. The term sheet listed Cohen's address as the address for
  1271. Subject Premises-I. According to the term sheet,
  1272. from Sterling and Melrose, to be secured by the medallions that
  1273. would borrow
  1274. vas to acquire from
  1275. 23 Accordingly, this interest income—which should have been reported as such on Cohen's tax
  1276. returns—is included herein in calculations of Cohen's true cash position.
  1277. 36
  1278. 2017.08.02
  1279.  
  1280. ****** Result for Image/Page 45 ******
  1281. Cohen. At a price of $20 million for thirty-two taxi medallions, the proposed transaction valued
  1282. each medallion as wotth $625,000. The term sheet also contemplated a $1,265,913 pay-down of
  1283. the principal balance ofthe loan. The term sheet made no mention of a $3.8 million payment from
  1284. Cohen to
  1285. or any other form of payment or financial transaction between the parties.
  1286. b. Additionally, an internal Sterling credit memorandum, dated October 4, 2017,
  1287. describing the terms of the Cohen4
  1288. transaction and the new loan to
  1289. id
  1290. —including a $3.8 million payment. The
  1291. not mention any payments from Cohen to
  1292. memorandum also noted that the "loan amount of $20MM indicates a $625M purchase price per
  1293. Indeed,
  1294. according to an internal Sterling memorandum dated February 5, 2018, in the month of January
  1295. 2018, taxi medallions sold for amounts ranging from $120,000 to $372,000. According to Sterling
  1296. Employee-I and Sterling Employee-2, they were never told that
  1297. agreed to a purchase
  1298. price of $625,000 in exchange for a lump sum payment from Cohen, or that Cohen would make
  1299. any payment to
  1300. c. On or about January 30, 2018, Sterling Employee-3 asked Cohen whether Cohen
  1301. pay
  1302. sum of money for entering into the
  1303. had a side agreement wit}
  1304. medallion transaction. Sterling Employee-3 asked Cohen about such an an-angement because,
  1305. paying for each medallion
  1306. according to Sterling Employee-3, the price that
  1307. appeared to be well above the market price. Cohen stated, in sum and substance, that he had no
  1308. side agreement—and never had a side agreement—with
  1309. 27. While Cohen anc
  1310. did not disclose any payment from Cohen to
  1311. n communications with Sterling, it appears that such a payment was contemplated.
  1312. Indeed, based on my review ofrecords maintained by Getzel, and my participation in an interview
  1313. 37
  1314. 2017.08.02
  1315.  
  1316. ****** Result for Image/Page 46 ******
  1317. with Getzel, I have learned the following, in substance and in part, regarding the proposed side
  1318. payment from Cohen to
  1319. a. On or about September 19, 2017, Getzel prepared a memorandum for Cohen
  1320. entitled, "Sale of NYC Medallion Entities and Debt Assumption" (the "Getzel Memorandum").
  1321. The Getzel Memorandum summarized the proposed transaction between Cohen and
  1322. in part, as follows: 'Michael and Laura Cohen will transfer ownership oftheir 13 NYC medallion
  1323. entities to a Buyer who will assume their bank indebtedness, upon the [Cohens'] paying down the
  1324. debt portfolio of the 13 entities by $500,000 and a cash payment to the Buyer of
  1325. the
  1326. payment of $3,800,000 to
  1327. to p,
  1328. but Getzel did not know where Cohen was going to obtain
  1329. As noted above, Cohen had more than $5,000,000 in cash and
  1330. cash equivalents as of September 2017, but had only disclosed in his September 2017 Financial
  1331. Statement that he had $1.25 million in cash.
  1332. 28. Based on my review ofrecords maintained by Sterling (as well as Melrose, the bank
  1333. with the participating interest in the loans) and reports of interviews of representatives of Sterling
  1334. (and Melrose), I have seen no evidence that Sterling, Melrose, or any other financial institution
  1335. involved in the potential deal with Cohen and
  1336. side payment from Cohen to
  1337. vas aware of the planned $3.8 million
  1338. The Illegal Campaign Contribution Scheme
  1339. 29. The USAO and FBI are also investigating a criminal violation ofcampaign finance
  1340. laws by Michael Cohen. As set forth below, there is probable cause to believe that Cohen made
  1341. 24 The reference to thirteen medallions appears to be an error by Getzel. Cohen and his wife
  1342. together owned sixteen corporations, which in turn owned 32 taxi medallions.
  1343. 38
  1344. 2017.08.02
  1345.  
  1346. ****** Result for Image/Page 47 ******
  1347. an excessive in-kind contribution to the presidential election campaign of then-candidate Donald
  1348. Trump in the form ofa $130,000 payment to Stephanie Clifford, an individual who was rumored
  1349. to have had an extramarital affair with Trump, in exchange for her agreement not to disclose that
  1350. alleged affair. As set forth below, there is probable cause to believe that this payment was intended
  1351. to keep Clifford from making public statements about the rumored affair on the eve of the 2016
  1352. presidential election, and thus constitutes a campaign contribution in excess of the applicable limit.
  1353. 30. From my review of public sources, I have learned the following:
  1354. a. In or around October 2011, there were rumors published on the gossip websites
  1355. TheDirty.com that-Trump had-had-an extramarital-affair-with Clifford"ln-adult-film-actress whos
  1356. screen name is Stormy Daniels, in or around July 2006. In or about October 2011, Life & Style
  1357. Magazine, a tabloid sold in supermarkets, also published an article, based on the report in
  1358. TheDirty.com, alleging an affair had occurred between Trump and Clifford. Both Trump and
  1359. Clifford, through their representatives, issued denials in response to the articles.
  1360. b. Specifically, on or about October 11, 2011, Keith Davidson, who identified himself
  1361. as Clifford's attorney, sent a cease and desist letter to TheDirty.com, demanding that the article
  1362. regarding Trump and Clifford be removed from the website. Additionally, on or about October
  1363. 12, 2011, Cohen, who was then Executive Vice-President and Special Counsel to the Tlump
  1364. Organization, stated to E! News that "[t]he totally untrue and ridiculous story ... emanated from
  1365. a sleazy and disgusting website.... The Trump Organization and Donald J. Trump will be bringing
  1366. a lawsuit ... [and] Mr. Trump and the Trump Organization would like to thank and commend
  1367. Stormy Daniels and her attomeys for their honesty and swift actions."
  1368. 31. On or about June 16, 2015, Trump formally launched his 2016 presidential
  1369. campaign. On or about May 4,-2016, Trump became the presumptive Republican Party nominee
  1370. 39
  1371. 2017.08.02
  1372.  
  1373. ****** Result for Image/Page 48 ******
  1374. for president, and on July 19, 2016, Trump officially became the nominee. Based on my review
  1375. of public sources, I have learned that while it does not appear that Cohen had an official title as
  1376. part of the Trump campaign, on multiple occasions Cohen made public statements on behalf of
  1377. Trump or his campaign. For instance, on or about August 18, 2016, Cohen appeared on CNN to
  1378. defend Trump's polling numbers.
  1379. 32. On or about October 7, 2016, The Washington Post published online a video and
  1380. accompanying audio in which Trump referred to women in what the article described as "vulgar
  1381. terms" in a 2005 conversation with Billy Bush, who was then the host of Access Hollywood. ume
  1382. foll owing- days on- October 85-2016s-Trump- appeared
  1383. things, "I've said and done things I regret and words released today on this more than a decade old
  1384. video are one of them. Anyone who knows me knows these words don't reflect who I am. I said
  1385. it. I was wrong and I apologize." Based on my review of public sources, I also know that
  1386. representatives of the Trump Campaign stated, in sum and substance, that the Access Hollywood
  1387. comment was an old and isolated incident.
  1388. 33. Based on my review of public sources, including an article published in Slate
  1389. magazine by a reporter who interviewed Clifford, I have leamed that around this same time, in or
  1390. about October 2016, Clifford was in discussions with ABC's Good Morning America show and
  1391. Slate magazine, among other media sources, to provide these media outlets with her statement
  1392. about her alleged relationship with Trump. According to the article in Slate, which the author
  1393. based on conversations with Clifford over the telephone and by text message, Clifford wanted to
  1394. be paid for her story or be paid by Trump not to disclose her accusation. As Cohen summarized
  1395. in a 2018 email obtained pursuant to the Cohen Email Warrants: "In October 2016, I was contacted
  1396. 40
  1397. 2017.08.02
  1398.  
  1399. ****** Result for Image/Page 49 ******
  1400. by counsel for Ms. Clifford stating that news outlets, including ABC News, were pursuing the 2011
  1401. story of an alleged affair between Mr. Trump and Ms. Clifford."
  1402. 34. From my review of telephone toll records25 and information produced pursuant to
  1403. the iCloud Warrant and Cohen Email Warrants, I have learned that in the days following the Access
  1404. Hollywood video, Cohen exchanged a series of calls, text messages, and emails with Keith
  1405. Davidson, who was then Clifford's attorney, David Pecker and Dylan Howard of American Media,
  1406. Inc. ("AMI"), the publisher of the National Enquirer,26 Trump, and Hope Hicks, who was then
  1407. press secretary for Trump's presidential campaign. Based on the timing of these calls, and the
  1408. content-ortheftext-messages-and-emails,-Lbelieve-thatÄAeast some_of_these_communications_
  1409. concerned the need to prevent Clifford from going public, particularly in the wake of the Access
  1410. Hollywood story. In particular, I have learned the following:
  1411. a. On October 8, 2016, at approximately 7:20 p.m., Cohen received a call from Hicks.
  1412. 27
  1413. Sixteen seconds into the call, Trump joined the call, and the call continued for over four minutes.
  1414. Based on the toll records that the USAO has obtained to date, I believe that this was the first call
  1415. 25 My attribution of certain telephone numbers to certain individuals as described in this
  1416. affidavit is based on my review of the vCard (virtual contact file) and text messages obtained from
  1417. Cohen's telephone pursuant to the iCloud Warrant.
  1418. 26 Pecker is President of AMI and, according to his own statements in public reports, a personal
  1419. friend of Trump. Howard is the chief content officer of AMI, who according to public records
  1420. reports directly to Pecker.
  1421. 27 | believe that Trump joined the call between Cohen and Hicks based on my review of toll
  1422. records. Specifically, I know that a call was initiated between Cohen's telephone number and
  1423. Trump' s telephone number at the same time the records indicate that Cohen was talking to Hicks.
  1424. After the Cohen-Trump call was initiated, it lasted the same period of time as the Cohen-Hicks
  1425. call. Additionally, the toll records indicate a "-1" and then Trump's telephone number, which,
  1426. based on my training and experience, means that the call was either transferred to Trump, or that
  1427. Trump was added to the call as a conference or three-way call participant. In addition, based on
  1428. my conversations with an FBI agent who has interviewed Hicks, I have learned that Hicks stated,
  1429. in substance, that to the best of her recollection, she did not learn about the allegations made by
  1430. Clifford until early November 2016. Hicks was not specifically asked about this three-way call.
  1431. 41
  1432. 2017.08.02
  1433.  
  1434. ****** Result for Image/Page 50 ******
  1435. Cohen had received or made to Hicks in at least multiple weeks, and that Cohen and Trump spoke
  1436. about once a month prior to this date — specifically, prior to this call on October 8, 2016, Cohen
  1437. and Trump had spoken once in May, once in June, once in July, zero times in August, and twice
  1438. in September.
  1439. b. Approximately ten minutes after the call ended, Hicks and Cohen spoke again for
  1440. about two minutes.
  1441. c. At 7:39 p.m., immediately after the second call with Hicks ended, Cohen called
  1442. David Pecker (as noted above, the President of American Media Inc., or Alvll) and they connected
  1443. for
  1444. for more than a minute. Three minutes after ending his call with Pecker, Cohen received a call
  1445. from Dylan Howard (as noted above, the Chief Content Officer of AN'II), and they spoke for
  1446. approximately a minute. According to toll records, it does not appear that Cohen and Howard
  1447. spoke regularly prior to October 8, 2016, as it had been over a month since they had called each
  1448. other.
  1449. d. At 7:56 p.m., approximately eight minutes after his call with Howard ended, Cohen
  1450. called Hicks and they connected for two minutes. At approximately the same time this call ended,
  1451. Cohen received a call from Pecker, and they spoke for about two minutes. At 8:03 p.m., about
  1452. three minutes after ending his call with Pecker, Cohen called Trump, and they spoke for nearly
  1453. eight minutes.
  1454. e. At 8:39 p.m. and 8:57 p.m., Cohen received calls from Howard and spoke to him
  1455. for about four and six minutes, respectively. At 9:13 p.m., about ten minutes after Cohen and
  1456. Howard hung up from the second of these calls, Howard sent Cohen a text message that said:
  1457. "Keith will do it. Let's reconvene tomorrow." Based on my involvement in this investigation, I
  1458. 42
  1459. 2017.08.02
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